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We take the headache out of ERISA 401(k) compliance
Among the hefty employment responsibilities we help you tackle is ERISA compliance. Managing a 401(k) plan, for example, requires a specific set of standards and diligence.
We assume these responsibilities for you, so that you can concentrate your efforts on building your business. As part of ERISA compliance, we monitor available 401(k) plans to insure that they meet appropriate guidelines. This service includes:
- Establishing a prudent process for selecting a 401(k) administrator, or other service provider.
- Ensuring that fees are paid, and that the level of service and quality matches the fees incurred (The law requires that the fees charged to a 401(k) plan are “reasonable,” but it does not establish a level of permissible fees. We help insure that fees are indeed reasonable).
- Educating investors about available plan options.
- Seeing that investment alternatives are adequately diversified
- Monitoring investments to assure that the alternatives offered by a specific service provider are appropriate
401(k) administrators charge many different types of fees, depending on how the plan is managed, but most fees fall into one of three categories: Plan administration fees, Investment fees, and Individual service fees. When these fees are carefully managed, the return on the employee’s investment is maximized. Unmanaged, the fees have the potential of taking a significant bite out of overall earnings. (For a detailed discussion on 401(k) plan fees, see “The Hidden Cost of 401(k) Plans,” HR Wire).
If you have questions about your 401(k), or would like to make one available to your employees, contact one of our representatives at your earliest convenience.